Which feature allows the insured to increase or decrease the policy's face amount, and any increase requires evidence of insurability?

Which feature allows the insured to increase or decrease the policy's face amount, and any increase requires evidence of insurability?

• A. Adjustable Face Amount
• B. Surrenders
• C. Survivor Protection
• D. Claim Form Provision

Answer: (A)

The feature being tested is the Adjustable Face Amount provision found in adjustable life insurance. This provision lets you change the policy’s death benefit up or down to meet changing needs. When you increase the face amount, the insurer typically requires evidence of insurability because you’re taking on more risk, so underwriting is needed to determine if the higher amount is warranted and what premium applies. The policy might also cap how much you can adjust and may adjust premiums accordingly to reflect the new benefit. This is the best answer because it directly describes a feature that explicitly allows altering the policy’s face amount and ties any increase to new underwriting. The other options don’t fit: surrender pertains to cash value withdrawal, not adjusting the death benefit; survivor protection is a rider providing benefits under specific circumstances, not a method to change the face amount; and a claim form provision relates to filing a claim, not changing the policy’s amount.

The feature being tested is the Adjustable Face Amount provision found in adjustable life insurance. This provision lets you change the policy’s death benefit up or down to meet changing needs. When you increase the face amount, the insurer typically requires evidence of insurability because you’re taking on more risk, so underwriting is needed to determine if the higher amount is warranted and what premium applies. The policy might also cap how much you can adjust and may adjust premiums accordingly to reflect the new benefit.

This is the best answer because it directly describes a feature that explicitly allows altering the policy’s face amount and ties any increase to new underwriting. The other options don’t fit: surrender pertains to cash value withdrawal, not adjusting the death benefit; survivor protection is a rider providing benefits under specific circumstances, not a method to change the face amount; and a claim form provision relates to filing a claim, not changing the policy’s amount.